Impact of Investments in Green Technologies on Energy Security and Sustainable Development in the Future

2023

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DOI 10.57125/fs.2023.12.20.03
Data confidence 70 medium
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Abstract

One of the key areas of technological development in the world is the development of the so-called green technologies, which allow to ensure the required level of economic growth without creating additional environmental risks. In recent years, green investments in general, and green bonds, in particular, have become an effective tool for financing green projects. The purpose of the study was to determine the impact of the development of green technologies on energy security and sustainable development of energy technologies. To achieve this goal, the following tasks were solved: the essence and main directions of development of investments in green technologies in the modern investment space were determined; the volume of investments in green technologies in the world was estimated; possible directions of influence of investments in green technologies on energy security were outlined. It is established that green bonds and green investments in general can attract investors and create prerequisites for effective ensuring a sufficient level of environmental safety. It is also noted that ESG criteria are increasingly penetrating the financial sector. The emergence of green investments is associated with growing requirements for environmental friendliness of production and corporate social responsibility. According to market participants, over the next five years, many of the world's largest companies will add ESG ratings to traditional credit ratings and metrics. In general, analysing the effectiveness of investments in green technologies will help to make informed decisions and choose optimal development strategies that help to reduce the negative impact on the environment and increase the competitiveness of companies in the global market. The study concluded that investments in green technologies have potential opportunities for companies in various industries, but the success of such investments depends on a thorough financial assessment, risk management, and long-term development strategy.